Knowledge Management Forum

Knowledge in Action - Issue 22

Developing individuals to beknowledgeable decision makers

Decision making is something we doevery day. It is easy to take it for grantedthat people know how to do it well. Inpractice this is not always the case. Noteveryone has time to think through thedifferent ways to make decisions whenthere is great pressure to take action.

Henley’s Knowledge Management Foruminvestigated how to improve decisionmaking in organisations. The processgenerated real insights into howindividuals can develop their personalcapacity to become knowledgeabledecision makers. It identified the keys togood decision making: the process andthe skills required.

Good decision makers always think about a decision at the outset,

reflect as a decision is evolving, and take time to consider a decision

after the fact. For some people this comes naturally, and personal

reflection or discussion with a coach or mentor is an intrinsic part of

decision making. For others time constraints and other priorities

dominate, and the opportunity to improve their decision making is

lost. It is useful, therefore, to follow a structured process that raises

questions in five key areas that will make a real difference to the

quality of decision making.

The five stages of good decisions are knowing why (linking the big

picture with the detail required for action), knowing what (defining

boundaries), knowing who (influencing others), knowing when

(maintaining momentum) and knowing how (weighing up the

balance of influences). They arise in no particular order, but the

central issue is knowing why.

Knowing why

Understanding the purpose of the decision is essential in order to keep a focus on the desired

outcome. It is vital to pay attention to the detail needed for action and effective implementation,

but at the same time remain clear about the big picture. The ‘why’ also needs to be

communicated to those affected by the decision. When they know why a decision is taken and

why it matters to the business, they can engage with it more meaningfully.

Knowing what

Boundaries should be defined at the outset to help those involved in making the decision to

understand its scope and limits. They make clear where contributions can be valuable, as well as

helping with choices between options. Defining what is included and what is outside the scope of

the decision can reduce uncertainty and ambiguity, but care is needed to avoid cutting off

options and choices prematurely.

Knowing who

Decision makers need to orchestrate contributions from a whole range of people during the

process. Understanding the implications of their different perspectives and contexts, as well as

the relationships between the parties, helps make the most of those contributions. This may

involve influencing activities such as lobbying peers and more senior people, shaping the

direction of effort by the team, and using conversations and questions to develop thinking.

Facilitation, negotiation and conflict resolution training can be useful.

2 © Henley Business School 2011

Collaboration, insight … practical value

This report is drawn from a research project carried out by Henley’s Knowledge

Management Forum, led by Jane McKenzie and Christine van Winkelen of Henley Business

School and Sindy Grewal, formerly of the Audit Commission. Participants included Balfour

Beatty, the British Council, Cranfield University and HMRC, and interviews involved a range

of senior decisions makers in a wide variety of organisations outside the project group.

Developing individuals to be knowledgeable decision makers

“We do a lot of work to help individuals

understand who to involve in decisions.

They can use the knowledge

communities to find someone who has

experience of a particular issue and find

someone with the skills they need.”

Sarah Grimwood, EA knowlege manager, MWH

Knowing when

As issues and challenges emerge during the decision-making process,

the decision maker needs to maintain momentum. The timing of

communication and action can have an effect on risk, resistance and

results. However, it is important to allow time for disagreement,

dissention and debate in all but the most simple of decisions, because

they can provide valuable new perspectives.

Knowing how

Having consulted widely, drawn on necessary evidence and expertise,

and considered the timeliness and relationship requirements, decision

makers need to weigh up these influences to shape a coherent

perspective that satisfies as many priorities as possible, whilst achieving

the decision purpose within the agreed boundaries.

Essential skills

Each of these five stages requires decision makers to have a set of

competencies. The research identified a set of skills and abilities that good decision makers use.

They are not designed to be exhaustive, but provide a useful starting point when identifying the

areas that need development. It also identified questions for personal reflection or coaching,

which can be asked throughout the decision-making process to ensure each of these essential

skills is employed.

Understanding and awareness

Good decisions begin with an understanding of the environment in which they are being made,

so decision makers may ask themselves questions such as: What has determined how this kind of

decision has been approached in the past? Does this still apply? They need an appreciation of the

organisational orientation to risk. This can be gleaned through questions such as: What risks are

associated with this kind of decision? Do these risks prevent the decision being made easily? They

also need to be able to investigate the facts, by asking questions such as: What evidence is

needed to understand the situation within which this decision is being made? What are the

options available, and how can you choose between them?

Reflective practice

The next set of skills relates to the individual’s ability to reflect. One thing that makes decisions

viable is demonstrating open and transparent behaviour in thinking about what is appropriate.

Decision makers need to consider questions such as: How can your thinking about the decision

be shared with others? Are you communicating appropriately to convince others? They also need

to be encouraged to challenge their own thinking, through questions such as: What are your

preconceptions about this decision? Can they be put aside while you explore other perspectives

and options?

It’s essential to learn from experience, and consider questions such as: How are decisions that you

have made in the past relevant to this one? And decision makers must have the confidence to

take risks and make mistakes. They should be asking themselves questions like: What happens for

you personally if this decision doesn’t turn out well? How big are the impacts of a mistake and

what contingencies can you put in place to mitigate them?

© Henley Business School 2011 3

Developing individuals to be knowledgeable decision makers

“Sometimes it is vital to sit back, reflect

on decisions and ask ‘how are you

processing this information to come to a

decision?’ Knowledge management

professionals are in a position to help

because they have the ability to look

across the piece at what informs decision

makers and encourage people to think

more broadly.”

Sindy Grewal, formerly head of knowledge at the

Audit Commission

Communication

Communication is essential. Decision makers can develop strong

communication skills by challenging themselves to respond to questions

such as: What are the communication issues associated with this decision?

How do you need to adapt your message to different stakeholder

groups? They also need effective listening and questioning skills.

Relating to others

Making a decision always involves others. It’s therefore essential that

decision makers recognise the value and contributions of the people

involved. They should consider the opportunities for others to offer

their perspectives on this issue. They need to know who to involve.

This means asking questions such as: Who will be a supporter and can

help? Who do you need to involve so they don’t cause problems later?

Whose advice will you trust? They need to maintain external

relationships and consider who outside the organisation needs to be

involved, and why. They should ask how they can use their personal

network in the organisation to best effect, and they should consider

who to trust within the process. Finally they need to manage their

emotions and consider questions such as: How do you feel about what you need to do and where

this decision might take you? How is that influencing your judgement?

Awareness of time

Timing is always a factor in decisions. Decision makers need a sensitivity to the timing of relevant

external events, the time pressures of the decision and the time pressures on others, the impact of

time on risk, and the impact of timeliness on the acceptance of the decision. However, this needs to

be considered within the context of the necessity for making time and space to think and reflect

before, during and after the decision. Helpful questions to ponder include: What are the difficult

choices that you are facing? How can you find the time to think them through? What sort of activities

help you think? Do you need to think alone or with a few others to think through the choices?

Practising these skills and abilities and developing the five competencies of a knowledgeable

decision maker requires dedicated reflection time. In the midst of a decision or when they want

to review and learn from previous decisions, those who are good at decision making exert some

energy in thinking through the response to some of the key questions above. It can help all

decision makers to be more sensitive to the different needs of each situation, and better able to

transfer that learning to similar situations. The key is improving the ability to make better

decisions by reflecting on past decisions.

The ability of individuals to make good decisions is a foundation for business effectiveness.

However, in itself, this is not enough to ensure that the decisions made within the organisation

are always sound. It is one of five factors that must be in place, which also include the use of

expert knowledge, the use of technology, internal and external collaboration and organisational

learning from decisions. More detail is available in issue 21 of this series.

© Henley Business School 2011. Printed on wood-free, chlorine/acid free, recyclable and biodegradable paper.

Henley Business School

Founded in 1945, by business for business. Henley’s full-service portfolio extends from undergraduate and postgraduate degree

programmes to a world-renowned executive education offer, from cutting-edge research spanning a broad range of fields to

specialist consultancy services. Henley develops leaders to make the right choices: right for themselves, right for their organisations

and right for the wider community in which they exist.

Henley Knowledge Management Forum

The Henley Knowledge Management Forum, founded in 2000, is an internationally recognised centre of excellence in knowledge

management. As a membership-based community, it is a magnet for leading business practitioners, world-class academics and

thought leaders who collaborate to develop insights, understanding and practical guidance on knowledge management.

To discuss the benefits of membership for your organisation, contact Professor Jane McKenzie +44 (0)1491 571454 or Dr Christine

van Winkelen +44 (0)1628 486849.

For more information visit www.henley.reading.ac.uk/kmforum

or email kmadmin@henley.reading.ac.uk for an information pack.

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“People often dive in at the action level.

But before they do anything they need

to take control of their own agenda.

This means building an understanding

of intention and purpose, the objective

of the strategic plan, the actual activities

required, and results.”

Alex Goodall, independent knowledge analyst